Overview The Compliance Assurance Process (CAP) was developed by the Large Business and International (LB&I) Division to improve the federal tax compliance of large corporate taxpayers by employing real-time issue resolution tools and techniques. In CAP, the IRS and taxpayer work together to achieve tax compliance by resolving issues prior to the filing of the tax return. Successful conclusion of CAP allows the IRS to achieve an acceptable level of assurance regarding the accuracy of the taxpayer's filed tax return and to substantially shorten the length of the post filing examination. CAP started as a pilot program in 2005 and became permanent in 2011. On August 29, 2016, the IRS announced that it was considering changes to its CAP Program and that no new taxpayers would be accepted for the 2017 and subsequent CAP years. On August 28, 2018, the IRS announced the changes to its recalibrated CAP Program for the 2019 CAP year and that new taxpayers may be accepted for the 2020 CAP year. On September 12, 2019, the IRS announced that new large corporate taxpayers interested in participating in the CAP program may apply for the 2020 CAP year. On September 15, 2022, the IRS announced that it was accepting applications for the 2023 CAP year along with a return to the regular one open return eligibility criteria for returning applicants. Highlights and Updates for the CAP 2023 Application Period. If you have any questions or comments regarding the contents of this page or the recalibrated CAP program, please submit them to the CAP program mailbox. 2023 CAP Application and Related Documents Form 14234, CAP ApplicationPDF Form 14234-A, CAP Research Credit Questionnaire (CRCQ)PDF Form 14234-B, Material Intercompany Transactions Template (MITT)PDF Form 14234-C, Taxpayer Initial Issues List (TIIL)PDF Form 14234-D, Tax Control Framework Questionnaire (TCFQ)PDF CAP Application and Selection Process CAP Eligibility and Suitability Criteria MITT Submission Process for New Applicants MITT Submission Process for Returning Applicants 2023 CAP Memorandum of Understanding (MOU) - DRAFTPDF Bridge Phase Frequently Asked Questions CAP Frequently Asked Questions MITT and APA Frequently Asked Questions CAP Internal Revenue Manual (IRM) – April 2020 Pre-2023 CAP Information Resources 2022 CAP Memorandum of Understanding (MOU)PDF 2021 CAP Memorandum of Understanding (MOU)PDF 2019 CAP Recalibration Discussion DocumentPDF – September 28, 2018 Statement of Interest for New CAP Applicants – July 2019
